First-time buyers in the Teignbridge area could stand a better chance of acquiring the keys to their first home following the launch of an equity loan scheme.
People who want to own their own home in Teignbridge but have struggled to raise the deposit now have the opportunity to apply for a loan under the Open Market HomeBuy scheme, which is being run by Teignbridge District Council and Sovereign Housing Association.
The initiative – often referred to as a shared equity scheme – is open to people in housing need who have a local connection, are in a household earning less than £60,000 and are unable to buy a suitable home without the help of the equity loan.
Buyers can look around for any home worth under £190,000 being sold on the open market in any part of Teignbridge. It can be a new build or a house that is already for sale, meaning people have the freedom to choose from any property on offer.
A mortgage or savings can be used to fund an agreed percentage of the purchase price for the home and Teignbridge District Council and Sovereign will then provide a loan on the remaining cost, up to a maximum value of 25%, depending on the buyers’ financial circumstances.
The Council is providing £300,000 for the scheme and Sovereign is contributing £100,000.
The scheme is aimed at helping a minimum of 10 local families buy their own home. Priority will be given to first-time buyers, key workers or housing association residents looking to move into home ownership.
Teignbridge District Council is holding a drop-in event in Old Forde House, Brunel Road, Newton Abbot, on January 30 from 1pm until 6pm so people can find out more.
Loans of up to £47,500 are available and will be secured against the value of the property. No interest is charged for the first three years of the loan, and the loan itself is only paid back when the property is sold, when the final mortgage instalment is paid or at the end of 10 years.
Interested buyers must first register with the HomeBuy agent for the area, South West Homes, and be on the Teignbridge District Council housing list. To do so visit: www.southwesthomes.org.uk/ or contact 0300 100 0021.
(from a press release)